Two Stocks Taking Off Soon

A look at two manufacturing stocks that happen to be best of breed and are poised to rebound with the turnaround, with CNBC's Jim Cramer.

Sure, there are macroeconomic issues in the US right now, but Cramer said investors should buy best-in-breed industrial names anyhow. That way they can profit from the up-cycle ahead.

"Believe me, you do not want to miss out on this move," said the "Mad Money" host Thursday. "Invest in America while everyone's still gloomy. I always like to say that pessimism creates the best prices and the gloom has created bargains galore."

That includes 3M and Emerson Electric , two multi-industry companies that Cramer said "executed very strongly" during the downturn and continued to make money during the recovery. He thinks the companies are "poised to hit the sweet spot and really take off." That's because in the last two recoveries, such multi-industry and electrical equipment outfits outperformed the S&P 500 by an average of 23 percentage points in the first two years of each recovery.

In every recovery Cramer's witnessed, he said there's a sequence to which businesses come back first. Typically, he said the early-cycle businesses, like automobiles and housing, outperform as economies around the world start to pick up. As those economies gain momentum, the mid- and late-cycle businesses, like industrial equipment and non-residential construction, start gaining speed.

"Right now it feels like we’re at the tipping point where the late-cycle plays begin to move, but the early cycle ones are still going strong," he noted. "That’s why I want you to take a look at a diversified industrial player, like a 3M or an Emerson, as they give you a high-quality mix of both kinds of cycles."

At 3M, 28 percent of its business is early-cycle, 25 percent is mid-cycle and 12 percent is late-cycle. Thirty-five percent of its business comes from less economically sensitive end markets. Meanwhile, Emerson has 14 percent of business in early-cycle, 47 percent in mid-cycle, 37 percent in late-cycle, and 2 percent is defensive.

Cramer also likes these companies because they're international players, as 63 percent of 3M's sales come from foreign markets while Emerson gets 55 percent from overseas. He said they're also well positioned to make smart acquisitions and praised the management at each company.

As the world's economies continue to improve, Cramer thinks both stocks are worth looking at, but time is running out. If you want in, you have to get in now.